How are luxury brands hurt by counterfeits?

How are luxury brands hurt by counterfeits?

The estimate from [18] states that the loss from counterfeiting luxury goods or brands amounts to US$ 12 billion per year [3], which means that sales of counterfeit items have caused billions of dollars in lost sales for legitimate luxury good producers [19].

How can luxury brands fight counterfeiting?

For years, the luxury industry has waged a battle against counterfeiters. It has invested heavily in ultra-sophisticated tech solutions which use the latest advances in nanotechnology, internet of things (IoT), and AI to authenticate products.

What are fake luxury goods called?

Yuandan goods
Yuandan goods – fake, unauthorised replicas of luxury products – do exist, there is evidence of that, but the production costs of a high-tier replica will make its selling price too high to compete with the cheap copies that other manufacturers make.

What are fake brands?

Knockoff products are those that copy or imitate the physical appearance of other products but which do not copy the brand name or logo of a trademark. They may still be illegal under trademark laws if they confuse consumers. Counterfeiters can include producers, distributors or retail sellers.

Why should you not buy counterfeit products?

​​​​​​​It is illegal to purchase counterfeit goods. Bringing them into the United States may result in civil or criminal penalties and purchasing counterfeit goods often supports criminal activities, such as forced labor or human trafficking. Help to stop the funding of criminal enterprises by buying authentic goods.

Why is counterfeit bad?

IT’S DANGEROUS: Counterfeit goods are often made using cheap, substandard, and dangerous components that put the health and safety of consumers at risk. IT SUPPORTS CHILD LABOR: Counterfeiters do not pay their employees fair wages or benefits, have poor working conditions, and often use forced or child labor.

Is buying fakes illegal?

​​​​​​​It is illegal to purchase counterfeit goods. Bringing them into the United States may result in civil or criminal penalties and purchasing counterfeit goods often supports criminal activities, such as forced labor or human trafficking.

What are the dangers of counterfeit luxury goods?

The mass selling of counterfeit products enabled by the Internet is a clear danger for luxury brands. The luxury industry is mostly composed of wearable products (eg, sunglasses, clothes, leather goods and perfumes), and the manufacture of such products is highly regulated, even when the goods are not high-end items.

How much is the trade in fake luxury goods?

These efforts are not paying off. The total trade in fakes is estimated at around $4.5 trillion, and fake luxury merchandise accounts for 60% to 70% of that amount, ahead of pharmaceuticals and entertainment products and representing perhaps a quarter of the estimated $1.2 trillion total trade in luxury goods.

Are there any counterfeit goods in the market?

Regrettably, this means that there is a high risk that those new plants will soon start adding their counterfeit goods to this already large market.

Why is Alibaba cracking down on counterfeiting?

Alibaba is eager to crack down on counterfeiting, as the success against them directly affects its global reputation and the development of its luxury vertical, Luxury Pavillion.